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SBI is currently in the process of integrating the merged entities' operations with its own to leverage cost and operational efficiencies.
"There can be no assurance that the bank will not have to undertake write-downs or write-offs in connection with the merger, which could have a negative impact on its financial condition and results of operations," said SBI's offer document for the recently conducted Rs 15,000 crore share sale through private placement while highlighting the risk factors.
The issue earlier this month was lapped up by foreign as well as domestic institutional investors.
The offer document placed before the institutional investors further said the bank "may also incur additional costs" towards integrating operations and harmonising functions pursuant to the merger.
"In particular, the absorption of over 70,000 employees of the merged entities is expected to increase employee benefit expenses, mainly accruing out of liabilities with respect to provision of additional superannuation benefits," it said.
Prior to the merger, SBI had 2,09,572 employees.
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